Galdi Green Report 2021

la nostra storia sostenibile

GREEN REPORT 2021

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2021 / GREEN REPORT

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LA NOSTRA STORIA SOSTENIBILE

CONTENTS LETTER TO STAKEHOLDERS Our sustainable journey The Galdi Group Galdi’s people Life-long training Environmental sustainability Research and Innovation Employee benefits Community engagement Sustainable supply chain Safety certifications Our sustainable packaging Customs authorisations Galdi Village, a place to fill GOALS FOR THE FUTURE

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Galdi approached 2021 with positivity and confidence. We wanted to begin the year with a fresh start, by officially opening the Galdi Village, a place to fill, the new building dedicated to our staff and the local community located right next to the production plant.

Along with valuing “connections” and the well-being of our team, we wanted to strengthen our relationships with institutions and the local community, with whom we had only interacted online during the pandemic.

As for sustainability, our ongoing efforts have focused on making our manufacturing plants increasingly more efficient, reducing our products’ environmental impact and engaging our employees in the implementation of the UN Sustainable Development Goals.

The sixth edition of Galdi’s Green Report illustrates the progress we have made so far, with the goal of bringing all stakeholders together and a keen desire to cope with difficult times as a big team!

Galdino Candiotto

Antonella Candiotto

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LET’S RESTART WITH AN EVEN STRONGER FOCUS ON QUALITY OF LIFE, ON RECONNECTING WITH OTHERS, PLACING SUSTAINABILITY AT THE CORE OF EVERYTHING WE DO

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OUR SUSTAINABLE JOURNEY

2010 The introduction of Lean Production leads to waste reduction and better resource allocation

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2016 The company analyses the Carbon Footprint and Water Scarcity Footprint of its filling solutions. Reflecting its commitment to sustainability, Galdi publishes the first Sustainability Report

2018 Galdi updates its Environmental Management System, certified in 2012, and receives certification under the new UNI EN ISO 14001:2015 standard

2021 Official opening of the Galdi Village, a place to fill, built to the highest standards in terms of sustainability and occupant wellbeing

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THE GALDI GROUP

ITALY Headquarters

A Galdi Company

USA

Wilmington, DE

RUSSIA Moscow

MOROCCO Sala Al Jadida 8

“

A GROUP, A STEADILY GROWING TEAM, DRIVEN BY SHARED OBJECTIVES

124

14

110

EMPLOYEES

ABROAD

ITALY

Millions 25

2021 CONSOLIDATED TURNOVER

23,9 MILLION (EUR)

20 15 10 5

2019

2020

2021

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GALDI’S PEOPLE

28 WOMEN

96 MEN

12

GALDI’S PEOPLE Number of employees

140 120

Service

100

Production

80

Admin

60 40 20 0 2019

2020

2021

Data as of 31/12/reference year

EDUCATION

39% DEGREE LEVELS

19%

61% Graduates Other

81% Bachelor degree Master degree

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LIFE-LONG TRAINING

HOURS

856

Improving and expanding technical expertise in mechanical and software design

188

Sales development, integrated supply chain and corporate sustainability

422

Soft skills, HR management, remote work

284

Expanding know-how in digital tools and cybersecurity areas

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TO THRIVE AS A TEAM AND AS A COMMUNITY, WE STRONGLY BELIEVE IN THE IMPORTANCE OF LIFE-LONG LEARNING

We strive to foster talent through life-long learning and the acquisition of new skills in innovative and cross-cutting topics.

Hours of training

2296 2413 1450 2584 1750 in 2017

in 2018

in 2019

in 2020

in 2021

Learning from experience: in 2021, we renewed our partnership with schools and universities.

1 PHD (UNIVERSITY OF PADUA) 2 DISSERTATION INTERNSHIPS

1 Sales and Marketing department 1 Technical department (subject area: Machine Intelligence)

1 UNDERGRADUATE INTERNSHIP

After Sales department 3 SCHOOL-WORK DUAL TRAINING APPRENTICESHIPS

With students attending Technical Institutes in the Treviso Province

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ENVIRONMENTAL SUSTAINABILITY PV SYSTEM

399,766 kWh produced

308,164

kWh used on site

91,602

kWh fed into the grid

551,798

kWh bought from renewable sources 16

135.97 avoided CO2

la nostra storia sostenibile

Utilizziamo solo

100% ENERGIA PULITA Energia proveniente dalle centrali idroelettriche delle Dolomiti dolomitienergia.it

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Grazie a

100% CO2 FREE 18

Abbiamo compensato tutta la CO2 prodotta dall’utilizzo di gas naturale

ENVIRONMENTAL SUSTAINABILITY

100%

CO2 - free gas

70.7 t CO 2 were compensated by the supplier through environmental projects

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100%

of the water used for machine tests is recovered and reused through a filtering system

approximately

-254 m

3

Water savings Since 2016, we have consistently reduced water usage for our manufacturing plant

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ENVIRONMENTAL SUSTAINABILITY

About

25,000

fewer plastic bottles in less than a year Thanks to the installation of a water dispenser

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99.7%

recycled solid waste

260.9 t WASTE

2.7%

mixed waste

37.27 t

Cartons used for testing were recycled and transformed into recycled paper

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ENVIRONMENTAL SUSTAINABILITY

ECO-FRIENDLY CARS

In 2021, we bought 3 next-generation hybrid cars and 1 full electric car

FSC PAPER

Project for more sustainable packaging for sending spare parts to customers

100% HEAT-FREE INKJET PRINTERS

• We print on recycled paper only • Energy savings • Better air quality

As part of our ongoing effort to eliminate the use of paper for reviewing technical drawings, digital screens were installed in the production departments.

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TREEDOM

Treedom is an environmental and social sustainability project. The goal is to plant and grow trees in several African countries, enabling local farmers to start a profitable business that guarantees a source of sustenance and income.

-47,110 KG SAVED CO2

Kenya 53 trees Cameroon 202 trees

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ENVIRONMENTAL SUSTAINABILITY

Planted trees absorb an amount of CO2 equivalent to the load of 245 trucks.

GALDI’S TREES Cocoa

Grevillea Mango Avocado

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RESEARCH AND INNOVATION

“

RESEARCH AND INNOVATION ARE KEY DRIVERS

Collaborating with research bodies is key to Galdi’s development. The company has always worked with universities and local institutions to share knowledge and foster innovation, particularly in the areas of digitization, IIoT infrastructure development, and food safety.

FILL GOOD’S CONSULTANCY SERVICES

Galdi collaborates on development projects in the field of microbiology through its in-house start-up, FILL good, which offers top-of-the-class consultancy and expertise in the areas of food safety and sustainability.

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l sigillo, di forma circolare, è previsto in due versioni (monocromatica e a colori). Nel cerchio più

esterno è riportata la scritta UNIVERSITÀ DEGLI STUDI DI VERONA mentre in quello interno sono

appresentati alcuni monumenti del centro antico della città (l'Arena, i portici di piazza Erbe, il

ponte Pietra, il fiume Adige, la torre dei Lamberti, la porta dei Leoni, la chiesa di San Siro).

l sigillo non può essere modificato o deformato e va sempre utilizzato in orizzontale e posto a

ianco e prima del logotipo.

L LOGOTIPO

l logotipo "Università di Verona" è un elemento base del sistema di identità visiva di Ateneo e va

utilizzato in combinazione con il sigillo (ad eccezione dei casi descritti nel manuale di identità

visiva). Il logotipo è stato ridisegnato utilizzando contemporaneamente gli elementi di due font (il

RESEARCH BODIES

ineare "Futura" e il graziato "Garamond") per evidenziare l'idea di un percorso che punta al futuro

ma pone l'accento anche sulla tradizione.

l Logotipo non può essere modificato o deformato e va sempre utilizzato in orizzontale. Sotto il

ogotipo può trovare spazio l’indicazione delle varie strutture accademiche e amministrative di

Ateneo.

Le indicazioni riferite alle principali casistiche d'uso del logo sono descritte nel manuale di identità

visiva che sarà pubblicato entro il mese di Giugno 2016.

UNIVERSITY OF PADUA

UNIVERSITY OF VERONA

PARTNERSHIPS

UNIVERSITY OF UDINE

“CA’ FOSCARI” UNIVERSITY OF VENICE

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SUSTAINABILITY BEGINS WITH OUR SYSTEMS! Making our machines increasingly more efficient is our goal, albeit not the only one!

In the development stage, we always consider the solutions that have the least impact on our planet, since efficiency means first and foremost wasting fewer resources.

For model RG270, we adopted for the first time the Eco Design approach, which focuses on the environmental impact during the design stage too.

The decision to use this new development approach was based on the outcome of an in-depth analysis we carried out with the University of Padua to appraise the impact of our fillers in terms of Carbon Footprint and Water Scarcity Footprint.

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RESEARCH AND INNOVATION

RG280

The new packaging machine - for which development ended in 2021 and which was officially launched in early 2022 - raises the standards in terms of consumption and emissions.

886m Saved water/year 3

Thanks to external cleaning and SIP sterilisation systems with pressurised steam

Lower impact

Reduction in chemical usage thanks to SIP sanitisation with pressurised steam

Reduced emissions

Catalytic converters to reduce hydrogen peroxide emissions in the environment

Food Waste

• No product left in the tank • Delivers ready-for-sale cartons right from the start

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DIGITAL SERVICES AND MACHINE INTELLIGENCE

“

HIGHER EFFICIENCY, LESS WASTE, LOWER IMPACT THANKS TO DIGITAL TECHNOLOGIES Galdi is committed to implementing 4.0 technologies to serve its customers and develop innovative, eco-friendly solutions.

Examples include our digital services and the team dedicated to Machine Intelligence.

DIGITAL EFFICIENCY HELPS REDUCE: • • • •

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food waste caused by downtime environmental impact of repairs early wear of components abnormal or irregular consumption levels

RESEARCH AND INNOVATION

GALDI’S DIGITAL SERVICES

MaSH Monitoring system that helps reduce downtime and product waste

E-Portal Galdi’s spare parts portals for more simplicity, fewer mistakes and less paper

TYE Fewer on-site visits thanks to Through Your Eyes, our remote video-assistance service

Web-FAT Customers can watch Factory Acceptance Tests live online, without having to come to our headquarters!

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EMPLOYEE BENEFITS

“

BETTER QUALITY OF LIFE IN- AND OUTSIDE THE WORKPLACE LEADS TO BETTER WORK PERFORMANCE

2015 Galdi participates in the “Family and Work” project promoted by the Veneto Region.

A three-year business plan identifies the measures to be adopted for a better work-life balance

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2019 The implementation of the agenda set out in the business plan leads to the Family Audit Certification, in line with the standard of the Autonomous Province of Trento

The Family Audit certification helps balancing work and family life!

Staff members are actively engaged in the company’s ongoing efforts to improve work-life balance.

2020 Galdi’s internal project group has gotten bigger, in order to have a wider forum for discussion and debate on future actions and initiatives

2021 Galdi maintains the Family Audit certification for the second year running. 2022 will mark the third - and last - year of the project

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A GOOD LIFE GOAL FOR A BETTER WORLD

“

OUR IDEA OF SUSTAINABILITY SPREADS WITHIN THE COMPANY AND ACROSS THE COMMUNITY

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EMPLOYEE BENEFITS

“A Good Life Goal for a Better World” is the name of the project Galdi developed and started in 2020 to raise awareness of the sustainability issues at the core of the UN’s 2030 Agenda among staff. The project was successfully completed in 2021.

Through the project, Galdi called on all the Group’s employees (in Italy and abroad) to reflect on sustainability, encouraging them to put in place concrete actions - for each of the Sustainable Development Goals - which were then shared with staff and put to the vote.

The “challenge” involved both employees and their families, proving to be a good opportunity to address the issue of sustainability not only at work but also in daily life!

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HELP END POVERTY

GOODLIFE GOALS

1

HELP END POVERTY Actions

1 Learn the causes of poverty at home and abroad

4 Save, borrow and invest responsibly

2 Share and donate what you can

5 Demand decent wages and opportunities for all

3 Buy from companies that pay people fairly End poverty in all its forms everywhere.

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REMOTE WORK

“

MORE FLEXIBILITY FOR MORE EFFICIENCY: THIS IS OUR IDEA OF REMOTE WORK

2018 Following the introduction of “mobile workstations” and notebooks for staff members, we started a pilot project with a group of employees.

GOAL: to introduce remote work in the company REMOTE WORK: 1 day a month

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2019

Rules for remote work are introduced.

REMOTE WORK: 2 days a month

EMPLOYEE BENEFITS

2020 The company started using remote work in February, before mandatory Covid measures were taken at national level.

Working remotely, our Field Service Engineers were able to provide full support to customers.

2021 Remote work is extended.

From September 2021: 4 days/month (1 day/week max.)

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COMMUNITY ENGAGEMENT

“

FROM COLLABORATION WITH SCHOOLS TO SOCIAL ENGAGEMENT, THE KEY WORD IS SHARING We have continued supporting schools, both in-person and online. We stayed connected with companies, institutions and schools through online webinars and meetings, but also hosted tours and events at both our headquarters and at the Galdi Village, a place to fill

GUIDED VISITS ON SITE COMPANY TESTIMONIALS (IN-PERSON AND ONLINE) PROJECTS FOR LOCAL SCHOOLS AND YOUNG PEOPLE

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In 2021, too, we made donations to support a number of local and international causes. In 2022, we made a donation to the Italian Red Cross for relief efforts in Ukraine The products for our Christmas gift baskets come from businesses engaged in social projects; moreover, all Galdi employees received vouchers to be redeemed for benefits on our online platform

The sum allocated for the company’s Christmas party was donated to Share The Meal, a World Food Programme’s initiative. With this action, we secured 3,714 meals for conflictaffected families in Afghanistan

The tables and chairs of the old canteen were donated to a local volunteer-led, first-aid charity

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SOCIAL PROJECT

“

OVERCOMING DIFFICULTIES, TOGETHER: THE PROJECT WITH Sol.Co. In 2021, Galdi began collaborating with Sol.Co., a social cooperative which operates in the Treviso area and offers training and work integration projects for people from disadvantaged backgrounds.

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COMMUNITY ENGAGEMENT

The cooperation with Sol.Co. took the form of a training and support project, aimed at enabling users to autonomously operate and service their own machinery.

GOAL To provide support and advice through training, in order to bridge the technical gap and enable Sol.CO. users to operate machinery and equipment

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SUSTAINABILITY PROJECT

“

A PROJECT TO RAISE AWARENESS OF SUSTAINABILITY ACROSS BUSINESSES AND COMMUNITIES BY ASSINDUSTRIA VENETOCENTRO

Several activities to develop awareness of sustainability issues in companies and the local area. This project brings together several stakeholders in the Provinces of Treviso and Padua, creating valuable networks across institutions, businesses and schools.

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COMMUNITY ENGAGEMENT

SUSTAINABILITY GROUP

A platform for discussion and know-how exchange: sharing sustainability!

For the sixth year in a row, we participated in the Sustainability Group, which connects businesses from different sectors and acts as a platform to share experiences and learn from each other with the goal of improving corporate sustainability strategies.

CORPORATE SUSTAINABILITY PROJECT FOR SCHOOLS

We support talented young people & help them unlock their potential!

In 2021, Galdi participated for the second year running in a project involving students from local Technical Institutes promoted by Assindustria VenetoCentro. This year, the challenge launched by Galdi focused on: • developing an efficient cap orientation system • providing the most sustainable solution

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SUPPLY CHAIN AGREEMENT PROJECT

“

SUSTAINABILITY ALSO MEANS SUPPORTING LOCAL COMPANIES IN OUR SUPPLY CHAIN

Since 2020, Galdi has been involved in the Supply Chain Development Programme by Intesa Sanpaolo, aimed at supporting production chains.

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COMMUNITY ENGAGEMENT

In order to support our supply chain, we signed a cooperation agreement in 2020.

32 22 11 4

Suppliers invited to the presentation event Participants in the presentation event (69%) Interested suppliers Suppliers accepted in the program

The project is ongoing and is set to continue in 2022.

CONFIRMING PROGRAM

This is a Supply Chain Finance program for advancing payment of receivables due from a customer (buyer) through a web-based platform, optimising cash flows and facilitating access to credit for suppliers.

The program benefits both suppliers, who can request advanced payment of their invoices to the bank, and customers, who can profit from an additional payment term extension, besides the one agreed with suppliers.

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SUSTAINABLE SUPPLY CHAIN

SUPPLIERS IN TOTAL

171

ABROAD

158

Lombardy 69

Piedmont 2

ITALY

13

Trentino 2

Friuli-Venezia Giulia 3 Veneto 61 Emilia-Romagna 16

Tuscany 4

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Marche 1

Galdi continues to prioritise local suppliers, both to support the area we operate in, and also to receive supplies as quickly as possible to optimally serve our customers.

Veneto 61 Vicenza 10 Verona 2

Treviso 37

Venice 1

Padua 11

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SAFETY CERTIFICATIONS

“

TRAINING AND PREVENTION ARE KEY TO ENSURE OCCUPATIONAL HEALTH AND SAFETY

Galdi has received certification under the UNI ISO 45001:2018 standard, which specifies requirements for occupational health and safety management systems.

SAFE AND HEALTHY WORKPLACES PREVENTION OF WORK-RELATED INJURIES PREVENTION OF OCCUPATIONAL DISEASES

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Throughout 2021, Galdi held several events to raise awareness of workplace safety among production employees.

We plan on holding similar meetings in the future too.

2021 / GREEN REPORT

Again in 2021, our injury incidence rates were lower than the average for the sector (ATECO 28.2).

Number of cases/ number of workers *1000

Incidence rate

70 60 50 40 30 20 10 0

Number of cases/ number of workers *1000

07 08 009 010 011 012 013 014 015 016 017 018 019 020 021 2 2 2 2 2 2 2 2 2 2 20 20 2 2 2

35 30 25 20 15 10 5 0

22,47 11,11

2017

50

Average incidence rate for the Industry (ATECO code 28.2)

2018

2019

10,87

2020

10,0

2021

SAFETY CERTIFICATIONS

Number of cases/ hours worked *1000000

Frequency rate

40 35 30 25 20 15 10 5 0

07

20

08

20

09 010 011 012 2 2 20 2

13

20

14

20

15 20

16

20

17

20

18

20

19

20

20

20

21 20

Number of leave days/ hours worked *1000 1

Severity rate

0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

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OUR SUSTAINABLE PACKAGING

“

GREEN PACKAGING, FROM ORIGIN TO RECOVERY, THANKS TO CIRCULAR ECONOMY PROJECTS

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GABLE TOP CARTONS Made from 75% FSC-certified paper - a renewable source - from responsibly managed forests (FSC® and PEFC)

Resealable screw caps for optimal product protection

Optimal shape for transport and storage

100% recyclable

END OF LIFE RECOVERY Recovered cellulose fibres are converted into home and personal hygiene paper products

Recycled polyethylene and aluminium residues are processed and used to make new products such as gadgets, household accessories and street furniture

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CUSTOMS AUTHORISATIONS

“

AEOC AUTHORISATION CERTIFIES THAT GALDI IS A RELIABLE EXPORTER In 2021, Galdi was granted Authorised Economic Operator (AEO) status, after Italian Customs officials conducted the relevant audits to verify Galdi’s fiscal compliance and financial solvency, also validating the knowledge, compliance with, and adoption of correct customs procedures.

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BENEFITS Simplified transit procedures within the EU Easier tax compliance reporting Better planning, faster shipments and fewer delays Improved relationships with Customs Customs transit priority thanks to verified customs and tax compliance The commitment our company made in 2021 marks the beginning of a closer cooperation, based on RELIABILITY AND TRANSPARENCY, with Italian customs authorities.

The key requirements to obtain, and maintain, AEO_Customs status are indeed financial solvency, tax and customs compliance.

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GALDI VILLAGE, A PLACE TO FILL

“

INNOVATION, WELL-BEING AND SUSTAINABILITY: THESE ARE THE PILLARS OF THE GALDI VILLAGE, A PLACE TO FILL

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Galdi Village, a place to fill is the new green building located next to Galdi’s production plant.

It was designed to be a hub to promote the wellbeing of our employees and of the community we operate in, to act as a networking platform for discussion and debate, and to host company and local events.

Official opening: March 2021

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LEED® Gold certification The LEED® Gold certification is one of the most stringent sustainability standards for new buildings.

The Galdi Village, a place to fill, was designed with the future in mind, shaped by employee well-being and sustainability.

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Here are some of the sustainable choices we made:

CONSTRUCTION PHASE Selected materials are high in pre- and post-consumer recycled content and low in VOC (volatile organic compounds)

Construction waste was disposed of by licensed waste disposal companies providing the percentage of recycled waste for each type of material Construction site operational plans were based on sustainable criteria with attention paid to workers

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OPERATIONAL PHASE

Light pollution reduction

Electricity: 100% renewable energy

Reduction and monitoring of electricity and water consumption

Solar and PV panels for renewable energy production

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The initial in-depth analysis, including design choices and the selection of materials and systems, will now be followed by ongoing monitoring to make sure that the high standards achieved are maintained over time.

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Rethinking employee wellbeing

Galdi Village, a place to fill features spaces for the well-being of our employees, including relax and networking areas, a new Fitness Area, as well as “Galdi Bistro”, a new healthy and sustainable catering concept.

The spaces are designed to be naturally lit, with large windows that offer a view of the garden and the surrounding landscape.

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We believe that the high levels of mental and physical well-being enjoyed by Galdi employees are essential for a better quality of life and for a lively, dynamic and healthy work environment. The Fitness Area was designed with this idea in mind: a place to train the body and mind with rooms equipped for both individual workouts and group classes (e.g. Pilates).

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GOALS FOR THE FUTURE ENVIRONMENTAL SUSTAINABILITY • Replacing lights in the production area and outdoor lighting fixtures with LED lights; • Expanding the area for the production of clean electricity; • Installing consumption meters for electricity, gas and water to monitor and optimize consumption.

COMMUNITY ENGAGEMENT AND EMPLOYEE WELLBEING • Participation in the “Girls Code It Better” project to create a new Club in the Treviso area, with the goal of encouraging more girls into STEM subjects; • Additional activities to foster the well-being of our employees (functional training, mindfulness class); • Renewed participation in the Sustainability Project by Assindustria VenetoCentro.

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la nostra storia sostenibile

2021 / GREEN REPORT

Via E. Fermi, 43/B 31038 Paese (TV) Italy Tel.: +39 0422 482211 Fax +39 0422 482230 68